The URL can be used to link to this page

Home My WebLink About4a. September Economic Development Report Memorandum To: Economic Development Commission From: Kati Bachmayer, Economic Development Manager Copy: Tina Goodroad, Community Development Director Justin Miller, City Administrator Date: September 23, 2025 Subject: Economic Development Report This memo is intended to provide information on new and expanding businesses, proposed development projects and economic development-related events. Business & Development Updates • The Study Station held a ribbon cutting on September 3 to celebrate opening in its newer, larger location at 21486 Humboldt Court #200. • Charged Fitness + Rehab held a ribbon cutting on September 11 to celebrate opening in its new location at 20168 Heritage Drive. • Children’s Dental Care & Orthodontics held an open house on September 11 to celebrate the completion of its 2,571-square-foot addition to the existing building at 17677 Cedar Avenue. The new space has allowed the business to add orthodontic services. • During the September 2 City Council meeting, the City Council adopted an ordinance to annex property that abuts the Lakeville boundary to be used by Compass Rail for rail car storage. The City Council also approved a resolution amending the 2040 Comprehensive Land Use Map and Staging Map to re-guide the land use and adjust the MUSA staging for 21 properties located west of I-35 for future residential development. • During the September 15 City Council meeting, the City Council approved a final plat for Kenyon Green. Ron Clark Construction has proposed 15 attached townhome dwelling units and one 49-unit apartment building to be located west of Interstate 35, north of 185th Street and south of Kenyon Avenue (near Lakeville Woods apartment complex). The preliminary plat was approved in June and a grading permit has already been issued to begin initial work on the site. The project has been awarded low income housing tax credits from the Dakota County Community Development Agency, as the units will be leased to individuals and families at 60% Area Median Income (AMI). Under Construction • Building permits have recently been issued to Legit Cannabis LLC (16000 Cedar Avenue), Green Box Cannabis LLC (16350 Kenrick Loop), ETS Performance (new location at 21033 Heron Way), Club Pilates (second location at 20137 Idealic Avenue) and Pickle in the Middle (21300 Juniper Way) for tenant improvements. • Work continues on Dakota Electric Association’s new HQ site to be located north of 225th Street and east of Cedar Avenue. • Great progress has been made on the construction of the Lakeville 35 Logistics Center. The 189,678-square-foot spec industrial building will be located at 21300 Juniper Way. • Construction continues on the 9,600-square-foot commercial building known as Kenrick Corner Second Addition. The new retail building is located to the north of Porterhouse at 20450 Kenrick Avenue and has identified Wild Things Indoor Playground as its first of several tenants. Building Permit Report The City has issued building permits with a total valuation of $203,188,108 through August. This compares to a total valuation of $185,538,692 for building permits issued through August 2024. The City issued permits for 148 single-family homes through August with a total valuation of $50,619,393. This compares to 213 single-family home permits through August 2024 with a total valuation of $65,287,000. The City has also issued 178 townhome permits with a total valuation of $45,268,690 through August, compared to 77 townhome permits with a total valuation of $18,298,000 during the same period in 2024. Lakeville ranked #1 in Twin Cities residential building permits according to Housing First Minnesota. Visit LakevilleMN.gov for more information on year-to-date building permit totals. Additional Highlights • Lakeville, Minnesota was ranked #6 most livable small city in 2025 by SmartAsset out of 279 cities with population sizes between 65,000 and 100,000. Cities were ranked based on seven livability factors including housing costs, unemployment rate and access to healthcare. • The Lakeville Convention & Visitors Bureau and the City of Lakeville have partnered with Explore Minnesota to become a Certified Film Ready Community. This designation helps position Lakeville as a potential location for film, television and media productions. • Community Development Director Tina Goodroad spoke on a Minnesota Real Estate Journal’s Cannabis Summit panel on September 10. • Community Development staff hosted a bus tour for Good Morning Lakeville on September 16. The route included current construction, as well as projects that have been approved or are working through the City’s process. • During the September 15 City Council meeting, the City Council proclaimed October as Manufacturing Month. The City of Lakeville has a proud tradition of recognizing our manufacturing businesses each October for Manufacturing Month. This year, Community Development is enhancing our approach to broaden outreach and strengthen connections within the community. Rather than hosting a single in-person event, City staff will personally deliver appreciation gifts to each of our 90–100 local manufacturers. Each gift will be accompanied by a letter acknowledging our sponsors and a thank-you video highlighting the essential contributions manufacturers make to Lakeville’s economy. Sponsors will also receive recognition in the video and across supporting materials. • A second meeting was held on the Cedar Avenue Corridor Study to review the preliminary market analysis findings. • Four Business Retention & Expansion visits will be completed in September. Development News Resources • Lakeville’s Interactive Development Map includes information on development projects. • Thrive! Business Newsletter is distributed monthly and includes development updates and helpful business resources. • City of Lakeville YouTube channel for Thrive! videos and other city news.